Floating rate savings bonds 2020: An overview

The Floating Rate Savings Bonds 2020 (Taxable), popularly known as the RBI 7.15% Bonds, currently offer a 7.15% taxable rate of interest over a tenure of seven years. They have replaced the Government of India's 7.75% (taxable) bonds - informally called RBI 7.75% bonds. They are called floating-rate bonds as the interest rate on these bonds is reset every six months starting from January 01, 2021 and is always set at a spread of 35 basis points over the prevailing NSC (National Saving Certificate) rate.

This article was originally published on February 09, 2022, and last updated on September 30, 2022.